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Lack of Listings Slowing Down the Market

July 23, 2018

As
the real estate market continues to move down the road to a complete
recovery, we see home values and home sales increasing while distressed
sales (foreclosures and short sales) continue to fall to their
lowest points in years. There is no doubt that the housing market will
continue to strengthen throughout 2018.

However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory!

Here’s what a few industry experts have to say about the current inventory crisis:

“Inventory coming onto the market during this year’s spring buying season…was not even close to being enough to satisfy demand,
that is why home prices keep outpacing incomes and listings are going
under contract in less than a month – and much faster – in many parts of
the country.”

“While
this spring’s sudden rise in mortgage rates [took] up a good chunk of
the conversation, it’s the stubbornly low inventory levels in much of
the country that are preventing sales from really taking off like they
should… Most markets simply need a lot more new and existing supply to cool price growth and give buyers enough choices.”

“This seasonal inventory jump wasn’t enough to offset the historical year-over-year downward trend
that has continued over 14 consecutive quarters…Despite the
second-quarter gain, inventory was down 5.3% from a year ago. Still,
this represents an easing of the double-digit drops we’ve been seeing
since the second quarter of 2017.”

Bottom Line

If
you are thinking about selling, now may be the time. Demand for your
house will be strongest while there is still very little competition
which could lead to a quick sale for a great price.